Pakistan Mobile bond tender triggers default alert

S&P says the material tender discount of up to 30% versus face value would prompt it to put a default rating on the bonds if the proposed transaction is completed.

As investors are pondering whether to accept a discounted bond tender offer from Pakistan Mobile Communications, Standard Poor's yesterday issued a note saying that if the proposed transaction is completed, it would view it as being tantamount to default. One reason, it says, is that the offer represents a material discount to face value.

The ratings agency also believes that the mobile operator could face difficulty servicing its debt obligations and complying with its covenants over the next one...

To continue reading, please login or register for free

Click for more on: tender | buyback | telecoms | citi | deutsche bank

Print Edition

FinanceAsia Print Edition


  • 2nd Compliance Summit Southeast Asia

    17 August 2017  |  Singapore
    The 2017 Compliance Summit Southeast Asia will take an in-depth look at the key compliance considerations today with a focus on regulation and new ...